Moore goes under after losing AAE $2m contract

Iconic publicly listed printing company is in administration days after assuring the stock exchange its financial situation was going to improve.

The shock drop comes after Moore reported a loss of $1.7million in cash flow for the quarter, prompting the ASX to query its viability. In response Moore reported it had been severely affected by the impact of restructuring as well as the costs of laying off staff. The company said it was looking to further reduce staff numbers in coming months in an attempt to reduce costs and return to profitability.

Despite losing the Australian Air Express contract, following an earlier loss of TabCorp's business, Moore said it retained the confidence of its bankers and had secured relaxed terms from various suppliers. According to a statement by John Lee, company secretary, the proceeds from the sale of Moore’s Western Australia business in March to Leo Moio’s, Print Media Group, would help get the business back in the black.

Administrators, McGrath Nicol, today (Tuesday 31 May) announced the company had gone into administration and requested trading in its shares be suspended.

The once mighty printing company has gone through a number of fairly dubious transformations in recent years. It became publicly listed when it was taken over by Argus Solutions last year.
It transited from being the premier forms printer in Australia with major press facilities in Albury (Paragon Printing), to operating mainly as a print management company. David Galvonjic exited as CEO in February, while the Wodonga warehouse was scheduled to be sold by the end of the financial year.

Moore reported a loss for the half year to December 2010 of $3.4 million.
At the time of going to press the Administrators were not available for comment.